Trending Now

Five shortlisted for power plant project

KUALA LUMPUR: The Energy Commission (EC) has shortlisted five consortia to construct and operate a 2,000mw coal-fired power plant scheduled to be completed by 2019.The five are 1Malaysia Development Bhd (1MDB), Tenaga Nasional Bhd (TNB), Formis Resources Bhd, Malakoff Corp Bhd and YTL Power International Bhd.Each company has tied up with local and foreign partners to bid for the 2x1,000mw coal-fired power plant estimated to cost RM8 billion to RM9 billion, based on a cost per kilowatt of US$1,300 (RM3,939) to US$1,500.The EC had called for proposals for the 2,000mw power plant under what is described as a Track 3B programme, to ensure there is sufficient supply of electricity in the future.The Track B programme is for green field power plants while the Track 3A programme is for brown field power plants or power plants in existence that would require a shorter time for completion.The bidders under Track 3B will be responsible for identifying and securing an appropriate site and the project scope will include the putting up of a transmission line from the plant to the 500kV grid system.EC had put in the request for qualification (RFQ) in December last year to which seven companies responded.The two dropped from the pre-qualification list are Automan Energy Sdn Bhd and Tadmax Energy Sdn Bhd, a subsidiary of Tadmax Resources Bhd.Now that the shortlisting process has been completed, the EC is expected to come out with the request for proposal (RFP) that will detail the technical requirements and possibly shape the direction of the tender process.The RFP is expected to be out by April 23 and those shortlisted will have until Sept 30 to submit their bids.1MDB has teamed up with Mitsui & Co Ltd and they have proposed to build the plant at Jimah in Negeri Sembilan using Olak Lempit as their injection point. This proposed site is located close to the 1,400mw Jimah coal-fired power station which is reported to be controlled by 1MDB.Soon to be listed Malakoff Corp Bhd has teamed up with Sumitomo Corp and the joint venture has proposed a site at Pulau Carey, Selangor using the same injection point, Olak Lempit.Meanwhile, TNB together with Global Power Ventures Sdn Bhd and China National Machinery Import & Export Corp have proposed a site in Tanjung Hantu-Segari, Perak with the injection point at Terong Bruas.Formis Resources and its consortium partners, SIPP Energy Sdn Bhd, Posco Energy and Posco Engineering & Construction Co Ltd have proposed a site in Tanjong Tohor, Johor.YTL, which has teamed up with Ranhill Power Sdn Bhd, has also proposed a site in Tanjong Tohor.Both TNB and 1MDB have already been shortlisted for the Track 3A project for a 1,000mw coal-fired plant that has to be built next to an existing plant. For this project, TNB has teamed up with Marubeni Corp, and 1MDB with Mitsui.

This article first appeared in The Edge Financial Daily, on April 19, 2013.